North Carolina 75-Hour Broker Course Practice Test

These questions are part of the practice quiz. Start practicing

• What does "informed consent" mean in real estate transactions?
• What is one way a broker can ensure compliance with fair housing laws?
• What constitutes misrepresentation in real estate transactions?
• The Real Estate Settlement Procedures Act (RESPA) requires lenders to ______.
• What is the role of the Real Estate Commission concerning trust accounts?
• What financial activity does amortization specifically refer to?
• Which statement about condominiums is true?
• What is the significance of the due diligence period in a real estate transaction?
• What information is required in a seller's disclosure statement?
• In North Carolina's Offer to Purchase and Contract, where should buyers call to verify wiring instructions?
• What are the potential penalties for violating the North Carolina Time Share Act?
• What does "dual agency" refer to in real estate?
• What are liens, easements, and other claims of ownership on property considered?
• What is the primary purpose of a lease agreement?
• Which governing body in North Carolina is focused specifically on home inspectors?
• What's the primary difference between reproduction cost and replacement cost?
• A landlord who wishes to enter an occupied rental unit for a legal reason may need to provide reasonable ______.
• What financial element reflects both demand and supply in the real estate market context?
• Under which circumstance might a lender require private mortgage insurance?
• What must a broker do when a property fails to sell within the listing period?
• What happens if a provisional broker does not complete their licensing requirements within the maximum time allowed?
• What is the difference between "exclusive right to sell" and "exclusive agency" listing agreements?
• What type of summary statement does property manager Abe provide to property owners?
• What does it mean to "float a loan"?
• When is an addendum necessary in the context of real estate?
• What does an appraisal primarily determine?
• Why is it important for buyers to conduct property inspections during the due diligence period?
• What does "real estate syndication" involve?
• What is the purpose of an option agreement in real estate?
• What is the broker focused on in a broker/independent contractor relationship?
• Which of the following is considered a violation of federal fair housing law?
• Which of the following is NOT a requirement to obtain a broker license in North Carolina?
• How does income from property taxes primarily benefit the community?
• In North Carolina, what is the maximum length of time a real estate broker can operate under a provisional license?
• As a dual agent, what must Stella do when a buyer seeks her advice on a property she is listing?
• What is meant by "property management"?
• What might a real estate addendum include?
• What is the recommended procedure for handling earnest money deposits?
• What is a broker’s fiduciary duty?
• How does a real estate agent typically earn their commission?
• How can Beth calculate the business part of her mortgage interest?
• Who is responsible for verifying and accurately reporting the square footage of a property?
• What document is used to show there are no encroachments on a property?
• Where should a realtor list a seller's wish to keep personal items, like rosebushes, in the contract?
• Which section on the Closing Disclosure helps borrowers identify changes from the Loan Estimate?
• What, when signed by all parties to a sales contract, changes the original terms of the contract?
• What best defines a survey in real estate?
• What is included in a letter of commitment from a lender?
• Cultivated crops are considered personal property, referred to as:
• What do we call the price at which two willing parties agree on a property?
• What does Section 8 of RESPA prohibit?
• Dominique purchased a timeshare that conveys the right to occupy for two weeks each year without ownership. This is an example of which type of timeshare?
• What type of insurance would cover both the structure and belongings of a homeowner?
• What is the primary purpose of a listing agreement?
• How does an addendum modify the original real estate agreement?
• Which option provides everything a lender needs to know to value the property used as collateral for a loan?
• What information is typically contained in a real estate contract?
• After the settlement meeting, what key action still needs to be completed by the closing attorney?
• What constitutes a "material defect" in a property?
• What is the purpose of the "Calculating Cash to Close" section on the Closing Disclosure?
• Which of the following best describes the purpose of the North Carolina Home Inspector Licensure Board?
• What is a common reason for including an addendum in a real estate contract?
• If a lender charges an interest rate higher than allowed, this is known as what?
• Monica substituted her daughter's name as the buyer of a property. What does this scenario exemplify?
• Which of the following accurately describes the role of a broker under dual agency?
• What do vacancy rates, new building permits, inventory rates, and sales volume represent?
• What is a downside for a first-time buyer securing financing through a land contract?
• If a home is valued at $120,000 and the tax rate is $.755, what is the total property tax owed?
• A seller owes $50,000 on a mortgage but wants to net $20,000 after paying the mortgage and a 7% commission. What must be the minimum selling price of the house?
• What role does a property manager play in real estate?
• What is "title insurance"?
• What economic principle of value describes when a lower-quality property can diminish the value of a higher-quality property?
• What does "buyer representation" involve in real estate?
• A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the monthly payment is interest?
• A property converted to natural gas may have which potential issue?
• What type of real estate term refers to a list of required adjustments at closing?
• When might a builder need an elevation certificate?
• How are liens categorized in real estate?
• How is the commission typically calculated in a real estate transaction?
• Federal and state fair housing laws aim to:
• What is the main purpose of an appraisal in real estate?
• Which option best describes a wetland area?
• What term can be defined as everything that is not real property?
• According to national standards, how should square footage in residential buildings be reported?
• When is it appropriate for a real estate agent to offer legal advice?
• What is a legal dual agency arrangement?
• What are the general influencers of real property value?
• Who is responsible for regulating home inspections in North Carolina?
• What can a buyer NOT do after learning a property has toxins?
• What is a "provisional broker" in North Carolina?
• What does the phrase “time is of the essence” in a contract signify?
• How does a broker disclose material facts to clients?
• What type of title does Martha hold as the buyer in a land contract?
• What should real estate professionals ensure about home inspectors in North Carolina?
• What is considered "real property" in North Carolina real estate law?
• What type of lien may provide security for payment, typically used in construction?
• On closing day, how many days of property tax will the seller be credited for if taxes have already been paid and the closing is on October 9?
• What should be considered when making adjustments for a comparable property?
• Why is regulation by the North Carolina Home Inspector Licensure Board important?
• What type of document is an addendum considered?
• What does "escrow" refer to in real estate?
• What form did Agatha help Rufus complete for his purchase offer?
• If the Carsons ask about registered sex offenders in the area, how should you respond?
• In what documents is a property’s legal description typically found?
• What would the monthly rate be if annual taxes are $750? Round to the nearest cent.
• What will the seller owe at closing if annual property taxes of $1,750 have not yet been paid and the closing is on May 1?
• Which type of appraiser is allowed to perform appraisals on any type of real estate?
• What happens if the buyer and seller do not agree to a dual agency?
• What type of lien is attached to a title to secure payment for work done on a property?
• Which of the following is the primary goal for a consumer when reviewing a Loan Estimate?
• What does "REO" stand for in real estate?
• Which rights are included in property ownership besides the right to use?
• What does the term "listed property" refer to?
• In real estate, what does the term "escrow" refer to?
• What is the appropriate response to a buyer insisting on property showings only in certain neighborhoods against fair housing laws?
• What is the primary difference between a fixed-rate mortgage and an adjustable-rate mortgage?
• What is the importance of an inspection contingency in a real estate contract?
• An office building with 15 tenants sold for $5 million. Estimated annual income is $400,000. What is the GIM?
• Which of the following payment forms are considered good funds?
• What is a "covenant" in the context of property?
• What is the minimum age to be licensed as a broker in North Carolina?
• How should you respond to a teacher interested in a property you are representing?
• If Richard, who has a fee simple absolute estate, dies, what will happen to his property?
• How often should homeowners plan to have their septic systems inspected?
• When an appraiser relies on comparable properties for estimating the market price of a property, which approach is being used?
• How can a real estate broker ensure compliance with North Carolina Real Estate License Law?
• What is the primary benefit of a Comparative Market Analysis (CMA) in real estate?
• In real estate, what does an “addendum” refer to?
• How does an appraiser begin an appraisal?
• Which office is charged with enforcing fair housing laws?
• Which of the following accurately describes the process of adding an addendum to a contract?
• What is the minimum number of hours needed for continuing education annually for brokers in North Carolina?
• What documents may clarify the services provided under a limited service agreement?
• What is a "short sale" in real estate?
• In a land contract, what does the term "vendor" refer to?
• In real estate, what does alienation refer to?
• If a former client files an ethics complaint because a house needed a new roof, what is the likely standing of the agent?
• What might happen if a home inspector is not licensed in North Carolina?
• What is the main benefit of private mortgage insurance?
• What is the purpose of the North Carolina Residential Rental Agreement Act?
• What is the core requirement for continuing education for licensed brokers in North Carolina?
• What does the term "equity" represent in real estate?
• Consumers who use LSA representation are informed about what services they ______ receive under a limited service agency agreement.
• What is the term for paying off a loan over time?
• Which of the following is a residential dwelling with shared walls?
• In a contract involving buyer Steffy and seller Clint, who is considered the optionor and who is the optionee?
• In real estate transactions, what is the term used for estimated money needed to finalize a transaction?
• After a closing, who is responsible for ensuring that the title is updated and marketable?
• What are the rights and privileges granted with a fee simple estate commonly called?
• Which of the following actions is prohibited by North Carolina real estate license laws?
• What is it called when a lender charges a borrower more than the highest allowable interest rate?
• What are the qualifications for obtaining a real estate broker license in North Carolina?
• How common is judicial foreclosure?
• Under what circumstance may a broker legally refuse to show a property?
• What does "CMA" stand for in real estate?
• If the monthly property tax rate is $74.15 and the closing is on April 30, what will the seller owe at closing?
• What is the primary purpose of the North Carolina Real Estate Commission?
• Which statement is true regarding the North Carolina Residential Property Disclosure Act?
• For a seller and buyer to legally acknowledge dual agency, what must occur?
• What must a broker do when they receive an offer while their client is considering a better one?
• What is the purpose of a title search in a real estate transaction?
• What is a true statement regarding the North Carolina Real Estate Commission?
• What role does a real estate closing agent play in a transaction?
• Which statement best illustrates the difference between general and specific liens?
• What three types of damage does basic homeowners insurance cover?
• What does the term "material fact" mean in real estate?
• If the subject property is valued at $2,000 less than comparable property A, how should adjustments be made?
• If the closing occurs on the 15th of a month when taxes are due, how is the tax proration typically handled?
• What is typically the first step a seller must take when listing a home for sale?
• What principle is followed by the North Carolina Home Inspector Licensure Board?
• The North Carolina Fair Housing Act protects which group that is not covered under federal law?
• To help Brandy change a complacent mindset, what could be recommended?
• What is meant by "clear title" in property transactions?
• When Jim opens a new trust account in compliance with NCREC's regulations, what must be true?
• In North Carolina, how long must real estate records be retained by the broker?
• Homeowners in flood-prone areas can purchase insurance through which program?
• Why might a buyer want to assume a loan?
• What occurs when one or both parties fail to meet all terms of the contract?
• A negotiable instrument must include an order to pay or a ______.
• According to the 10-second rule, before opening the door to a property, take two seconds to ______.
• What type of items go into the seller's credit column and the buyer's debit column?
• What is the main function of the North Carolina Home Inspector Licensure Board?
• Traditionally, what represents supply and demand in the real estate market?
• Which phrase in a real estate contract signifies that parties must adhere strictly to specified timeframes?
• Your client's property realizes an annual net income of $24,000. Its value is $300,000. What is its capitalization rate?
• Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
• As Bodhi's agent, what is your fiduciary duty of loyalty to him?
• Which tool would be utilized by an appraiser to analyze comparable properties?
• How can North Carolina counties collect on unpaid property taxes?
• What does the Loan Estimate enable consumers to compare apart from the APR?
• What is typically included in the bundle of rights granted with property ownership?
• What does zoning regulate in real estate?
• Which statement is true regarding an implied agency agreement?
• In real estate terminology, what defines an affiliated agent?
• What term describes the process of paying down a mortgage over the loan's term?
• What must a broker do when they receive an offer that is not accepted?